Mod 2 Flashcards
Marketing Planning Process
M-SOS-M Mission Statement Situation Analysis Objectives Strategy Development Monitor & Control The plan paints the big picture of what is happening with an organization internally & externally. *Marketing plan is meant to be the guiding document used by marketing managers and teams to identify objectives and plan the tactical implementation of marketing mix tools.
Mission Statement
- Clarifies what the plan hopes to achieve
* Focus on what the customers wants and needs are
Situational Analysis
• Helps marketers understand what to do & how to do it • Consideration of the controllable (product and organizational capabilities) o Uncontrollable (customer, competition, and business environment) that define the current and future state of the market • A situation analysis may sometimes be a SWOT analysis, which includes a review of the company's internal strengths and weaknesses and any external opportunities and threats it faces
Objectives
- Specify measurable outcomes that will be achieved within a particular time frame
- Help individuals across the team to understand the goals and determine whether the strategy is effective and the tactics are being well executed
- SMART are specific, measurable, achievable, relevant, and time-bound
Strategy Development
- The marketing strategy must identify a plan that will use the marketing function’s resources and expertise most effectively to achieve its mission, objectives, and goals
- A company might simultaneously execute business strategies to enter a new market, grow market share in an existing market, and improve organizational efficiency
Monitor & Control
- The plan is implemented
* Marketers track progress toward the stated objectives, measuring performance so adjustments can be made
Planning Tools - Situational
- Several tools help clarify the situation and analyze the best potential directions for a company to move forward
- Marketers need a clear understanding of the current state of the organization and the market to develop effective marketing strategies
SWOT Analysis
• SWOT analysis examines the internal (controllable) and external (uncontrollable) factors that impact the organization and its strategies
o The internal factors are strengths and weaknesses
o The external factors are opportunities and threats
• A SWOT analysis gives an organization a clear picture of the situation in which it operates and helps it determine which strategies to pursue
o It encourages realistic planning
o It improves an organization’s ability to forecast future events
Controllable Factors
- Financial resources
- Technical resources and capabilities
- Human resources
- Product lines
Uncontrollable Factors
- Technology innovations and changes
- Competition
- Economic trends
- Government policies and legislation
- Legal judgments
- Social trends
BCG Matrix
• When a company has many different products or even many different lines of business, strategy becomes more complex
• The company needs to not only complete a situation analysis for each business, but also determine which businesses warrant focus and investment
o growth–share matrix
• The BCG matrix considers two different aspects of a business unit or product
o What is the current market share?
o What is the market’s growth potential?
Dog
o A product or business with low market share in a mature industry is a dog. There is no room for growth, which suggests that no new funds should be invested in it
Cash cow
o A cash cow is a product or business that has high market share and is in a slow-growing industry. It is bringing in more money than is being invested in it, but it does not have much growth potential. The profits from a cash cow can be used to fund high-growth investments, but the cash cow itself warrants low investment
Question mark
o A question mark is a product or business that has low market share currently, but is in a growing industry. This case is trickier: The product or business is consuming financing and creating a low rate of return for now, but its direction is unclear. A question mark has the potential to become either a star or a dog, so close monitoring is needed to determine its growth potential
Star
o A star has high market share in a fast-growing industry. This kind of product or business is poised to bring a strong return on the funds invested. It also has the potential to become a cash cow at the end of the product life cycle, which can fund future investments
